Cogen Plant Gets Court Ok

A federal judge yesterday refused to block the state Department of Environmental Resources from issuing permits for a proposed cogeneration plant in Nesquehoning.

The judge's ruling, against a motion filed by a Nesquehoning resident, allows the DER to issue surface mining and air quality permits for Panther Creek Partners, the developers of the 80-megawatt, $165 million cogeneration project.

Kathleen M. Callaghan, of Fern Terrace, Nesquehoning, filed and prepared the motion herself, asking the judge to stop the DER from issuing the permits until an investigation of an adjacent toxic waste site is complete.

Company officials expect to receive the permits within a week and begin construction 30 to 60 days later.

In handing down the ruling, Judge William W. Caldwell also gave the DER until June 18 to request dismissal of the motion. If the state does not answer, a hearing will be held in federal court in Harrisburg.

However, deputy Attorney General Douglas Sherman, who handled the case for DER, said he will ask that the case be dismissed.

"We're pleased with the judge's action," said Thomas M. Barnett, business manager for Constellation Development Inc., a partner in the project. "And it's certainly what we expected."

The toxic waste site referred to in the Callaghan motion was created by the former Tonolli battery recycling operation. Tonolli operated along Route 54 in Nesquehoning from 1976 to 1986 leaving behind lead, cadmium, chromium and arsenic -- toxic heavy metals. After Tonolli went out of business, it was placed on the federal Environmental Protection Agency's list of Superfund sites.

Last year, the EPA spent $1.3 million at the site in an emergency cleanup, removing contaminated drums, soil and water. The EPA has yet to determine the extent of contamination on and around the site.

The cogeneration plant will burn anthracite waste, called culm, to generate steam and electricity. The electricity will be supplied to Metropolitan Edison Co.

The plant has gained the backing of borough and county governing bodies. The Carbon County Industrial Development Authority has agreed to provide a $165 low-interest, tax-free bond for the project.

Constellation Development Inc. of Baltimore and Pegasus Power Partners of San Diego are the partners for the project.